You Must Be Confident of Your Value to Win at High Prices

How confident are you and your sales team that your product is worth its price?

The answer to that one question is a fantastic predictor of how much you discount your product. People that don’t believe their product is worth it have a very hard time winning at high prices. Instead, they discount to a “reasonable” price.

A highly profitable attitude and belief is that my product is so worth its price that I feel sorry for people who don’t buy it. If they bought from the competition, they didn’t make the best decision because I failed to communicate the value well enough.

This isn’t a game. This is truth. Are your products that good? Are they that much better than your competitors? If you don’t believe it, you are probably discounting too much.

If your products aren’t that good, then that is where you should focus. Listen to your market. Only add new features that buyers would pay for and users would use. Be better than your competitors. When you add the right features long enough, you will gain that confidence.

In fact, you will hear your own users tell you stories that strengthen your confidence. If you’re not confident, work on your product first. Have price in your mind and in your research, but realize your products have to add value before anyone will buy them.

Mark Stiving

Mark Stiving

Mark Stiving is an instructor at Pragmatic Marketing with more than 20 years of experience in business startup, development, management, turnaround and sales and design engineering. He has helped companies create and implement new pricing strategies to capture more from the value they create, and has consulted with Cisco, Procter & Gamble, Grimes Aerospace, Rogers Corporation and many small businesses and entrepreneurial ventures. He has led pricing initiatives as director of pricing at Maxim Integrated and as a member of technical staff at National Semiconductor. Mark also has served as president of both Home Director Inc. and Destiny Networks Inc. and as an assistant professor of marketing at The Ohio State University. Mark also is the author of “Impact Pricing: Your Blueprint to Driving Profits” (Entrepreneur Press, 2011). He can be reached at mstiving@pragmaticmarketing.com.


(0) Comments

Looking for the latest in product management news, articles, webinars, podcasts and more?